Pilgrim's Pride: Shareholders back takeover

PITTSBURG, Texas - Pilgrim's Pride Corp., the nation's second-largest poultry producer, said Thursday that its hostile bid for Gold Kist Inc. is supported by owners of most of the rival's shares.

Pilgrim's Pride said Gold Kist shareholders tendered 34.2 million shares, or 67 percent, of the company's stock in support of Pilgrim's Pride's $1 billion offer - $20 per share - by the end of Wednesday.

Pilgrim's Pride announced in August it would bid for Gold Kist, the nation's No. 3 poultry company, and it began the tender offer in September. Gold Kist has said it wants to remain an independent company and has taken legal action to ward off the bid.

Pittsburg-based Pilgrim's Pride said it extended its tender offer to buy all outstanding shares of Gold Kist until Dec. 27.

Pilgrim's Pride, which employs more than 1,500 people locally, according to Athens Area Chamber of Commerce figures, operates a poultry processing plant on Barber Street and a feed-milling facility on Tallassee Road. Gold Kist, with an Athens workforce of more than 600, has a poultry processing plant on Oneta Street.

Two spokespeople for Gold Kist did not respond to repeated requests for comment. On Tuesday, the Atlanta-based company said its directors were willing to pursue a deal with Pilgrim's Pride but that the $20-per-share offer wasn't good enough.

O.B. Goolsby Jr., Pilgrim's Pride president and chief executive, urged Gold Kist directors to drop their opposition to a takeover.

"We believe this strong response is a clear indication that Gold Kist stockholders recognize the compelling value of our offer and want Gold Kist's board of directors to waive its takeover defenses, including its poison pill, so stockholders can receive their money as soon as possible," he said in a statement.